Posts Tagged ‘Big 4’
Status of the six felons in the leaked inspection lists fiasco
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Of the six players in the fiasco of KPMG getting leaked inspection lists from PCAOB, one is in prison, two have been sentenced and await their reporting date, while three are scheduled for sentencing.
Third sentencing: PCAOB staffer who leaked inspection lists to KPMG earns 9 months in prison.
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Jeffrey Wada, the former PCAOB staff person who leaked inspection lists to KPMG, was sentenced to nine months in jail plus three years supervised release. He was convicted of wire fraud in March 2019.
Last person in KPMG inspection leak fiasco enters guilty plea
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The last person to face justice in KPMG’s fiasco of gaining illegal access to PCAOB inspection lists entered a guilty plea a few weeks before his scheduled trial.
David Britt entered a guilty plea on 10/3/19 to one count conspiracy to commit wire fraud. His trial would have otherwise started on 10/21/19.
Sentencing is scheduled for 5/8/20.
Second sentencing in KPMG fiasco of getting list of PCAOB inspection list.
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The most senior level former partner charged in the KPMG “steal the exam” fiasco was sentenced to one year and one day in prison for his role in the leak of PCAOB inspection targets. David Middendorf received a fraction of the 37-46 months requested by US Attorney office and 46-57 months recommended by the United States Probation Office.
Some articles to provide lots more info:
Wall Street Journal – Jean Eaglesham – 9-11-19 – Ex-KPMG Partner Sentenced to a Year and a Day in ‘Steal the Exam’ Scandal
Crain’s New York Business – Aaron Elstein – 9/11/19 – Former top KPMG partner gets a year and a day in prison – Article points out the sentence of a year plus one day means Mr. Middendorf is eligible for good behavior credit.
More details on first sentencing in KPMG/PCAOB fiasco as second sentencing is expected today.
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The second sentencing in the fiasco of leaking PCAOB’s inspection list to KPMG is set for 10:30 today, 9/11/19.
Background on Mr. Middendorf sentencing
David Middendorf will face federal judge J. Paul Oetken to learn how long he will be in federal housing. Judge Oetken is handling all of the trials in this case.
On 7/26/19 Mr. Middendorf submitted his arguments on sentencing (docket #379). If you have lots of time on your hand, you can also read the 25 attachments.
The US Attorney filing had this comment (#394), which I’ll quote:
First sentencing for leak of PCAOB inspection list to KPMG
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A former Inspections Leader at PCAOB who went to work for KPMG as an Executive Director and was involved in leaking lists of audits scheduled for inspection was sentenced today.
Two articles provide more info on SEC sanctions against KPMG for ‘stealing the exam’ and CPE course cheating fiascos.
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For more discussion on the dual fiascos of the now-former-senior KPMG partners getting the PCAOB inspection list and altering workpapers along with cheating on continuing education classes, check out these two articles:
Francine McKenna at MarketWatch on 6/18/19: The KPMG cheating scanal was much more widespread that originally thought.
Article provides a good summary of the settlement.
Try this on for a word picture, which I’m expanding from Francine’s description in the article:
Getting a $50M fine from stealing the inspection list (and then altering workpapers) is the powerful right punch that everyone was expecting. The test cheating part is a staggering left hook that nobody saw coming.
